Ethanol producer files for Chapter 11 in Wilmington

Delaware Business Ledger
Published: Saturday, April 11, 2009 8:01 PM CDT

Another ethanol company is in Delaware U.S. Bankruptcy Court. Illinois-basede Aventine Renewable Energy Holdings, and certain holders of its 10.0% senior unsecured notes have agreed to a first priority secured debtor-in-possession (“DIP”) term loan totaling $30 million that will enable the Company to continue to satisfy obligations associated with its ongoing operations. The DIP loan aims to give the company and creditors time to come up with a plan for its future, according to a release.

Ethanol producers have been hit by an excess supply and falling demand for gas that has reduced demand for higher percentages of ethanol and gasoline.

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